\section{Varian \& Shapiro}
\label{sec:varian}
This chapter is explaining Standard Wars and their meaning mostly by two texts by Carl Shapiro and Hal R. Varian. They are without ``doubt about the significance of standards battles in today's economy''.\citep[8]{STANDARDWAR} But in the beginning it is worth thinking about the following questions. Why can Pepsi and Coke co-exist? And Gibson and Fender? But not Word and WordPerfect? Symbian and iOS and Android?

Many different standard wars can be seen throughout history in many different sectors, as Varian and Shapiro list for example three different cases in their article ``The Art of Standard Wars'' from 1999. With these cases they illustrate the theory and outcome of standard wars plain and easy to understand. Taking as an example their listed case of Thomas Edison against George Westinghouse which 
\begin{quote}
\textit{``concerned the distribution of electricity. Thomas Edison promoted a direct current (DC) system of electrical power generation and distribution. Edison was the pioneer in building power systems[...] Edison's direct current system was challenged by the alternating current (AC) technology developed and deployed in the U.S. by George Westinghouse''.}\citep[10]{STANDARDWAR} 
\end{quote}
The result of this battle leads in Westinghouse and AC being the superior standard, even though DC had the first-mover advantage. Varian and Shapiro are saying this as follows: ``A first-mover advantage (of DC) can be overcome by a superior technology (of AC) if the performance advantage is sufficient and users are not overly entrenched.''\citep[212]{SHAPIRO} This phenomenon of a decay of the first-mover will later be analyzed in the chapter \ref{chap:analysis} and its subchapters. 

Another theory which will be discussed later on in the analysis chapter is that ``[a] dominant position in one generation of technology (such as RCA enjoyed in the sale of black-and-white sets) does not necessarily translate into dominance in the next generation technology.'' \citep[13]{STANDARDWAR} The outcome of this historical standard war, where the Radio Corporation of America (RCA) was a very powerful manufacturer, who in the end did, at first, not succeed in the new wave of technology, can be compared to Symbian. In the case of Symbian, it did not lay back and take the market dominance as granted, but it had problems with keeping the authority of the market.

\subsection{Standard War}
\label{sec:war}
The two texts of Varian and Shapiro we are referencing to are mainly concerned with the topic of standards wars and as standard wars are a very important topic not only nowadays, but also within our research topic, we are going to give record of standards wars and explain them short and simply. 

Varian and Shapiro explain the origin of a standards war in that way, that ``[w]hen two new incompatible technologies struggle to become a de facto standard, we say that they are engaged in a standards war.''\citep[261]{SHAPIRO} Therefore it always needs at least two companies, consortia or standards to compete of having the dominating position on the standards market. Whereas Stango notes that there are various ways in which a standards war can come up. He lists two different possibilities on how a standards war can emerge in his article about ``The Economics of Standards Wars''. His examples are that 
\begin{quote}
\textit{``First, a new technology may come to market that is fundamentally incompatible with the old. This is the case with analog vs. digital music recording. A second possibility is that producers could intentionally design technologies to be incompatible. Home video game systems are an example of this sort of incompatibility.''}\citep[2]{STANGO} 
\end{quote}
// SOMETHING ABOUT THE PROCESS ?? //


When the standards wars are coming to an end, there are again different possibilities how standards wars can end. According to Varian and Shapiro the `` wars can end in a truce [...], a duopoly [...], or a fight to the death [...]. Standards wars are unique to network markets with powerful positive feedback.''\citep[261]{SHAPIRO} As an example for a truce can modems or the color television be seen, this standards wars ended with the implementation of one collective standard. The war end of a duopoly happened to the two big video game companies Nintendo and Sony. 















\citep[9]{STANDARDWAR};\citep[41]{SHAPIRO}
